Refer to the Accompanying Table for a Certain Product's Market

question 119

Multiple Choice

$$\begin{array} { | c | c | c | } \hline \begin{array} { c } \text { Quantity Demanded } \\\text { Domestically }\end{array} & \text { Price } & \begin{array} { c } \text { Quantity Supplied } \\\text { Domestically }\end{array} \\\hline 1,400 & \$ 10 & 2,200 \\\hline 1,600 & 9 & 2,000 \\\hline 1,800 & 8 & 1,800 \\\hline 2,000 & 7 & 1,600 \\\hline 2,200 & 6 & 1,400 \\\hline 2,400 & 5 & 1,200 \\\hline\end{array}$$ Refer to the accompanying table for a certain product's market in Econland. Assume that the world price of the product is $6. What would be the difference in the total revenue received by foreign
Producers after a quota of 400 units is imposed, compared against the total revenue received by
Foreign producers when a $1 per unit tariff is paid?

• A) $0 revenue difference
• B) $100 more in revenue with a quota than with a tariff
• C) $400 more in revenue with a quota than with a tariff
• D) $400 more in revenue with a tariff than with a quota

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Definitions:

Dependent/Outcome Variable

A variable in an experimental setting that is being measured or tested, expected to change as a result of manipulations to the independent variable(s).

Odds

A ratio expressing the likelihood of a particular outcome versus the likelihood of not achieving that outcome.

Mammogram

An X-ray image of the breast used to detect and diagnose breast cancer.

Multiple Logistic Regression

A statistical method used to model the relationship between a dichotomous dependent variable and two or more independent variables.